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Proposed Tobacco Law Could Cost Kenya Sh12bn, BAT Kenya Warns

NAIROBI,Kenya,May 22-BAT Kenya has warned that proposed amendments to Kenya’s tobacco control laws could cost the government Sh12 billion in annual revenue and put more than 100,000 livelihoods at risk across the tobacco value chain.

In a memorandum submitted to the National Assembly, the cigarette manufacturer raised concerns that provisions in the Tobacco Control (Amendment) Bill, 2024 could intensify illicit trade and disrupt legitimate industry operations.

The firm estimates that Kenya’s black market for tobacco products already accounts for about 45 percent of cigarette sales, warning that the proposed measures could further entrench the illegal trade.

BAT Kenya Managing Director Crispin Achola said the proposal ignores global regulatory trends that encourage adult smokers to shift to lower-risk alternatives.

“We remain committed to supporting the government’s public health objectives,” said Crispin Achola, Managing Director of BAT Kenya.

“However, regulation must be balanced and based on the best available science. The current proposals risk destroying a legitimate value chain and creating a fertile ground for the black market to thrive, ultimately undermining the very public health goals they seek to achieve.”

The company cited countries including the United Kingdom, Sweden and New Zealand, where regulators have adopted differentiated approaches for non-combustible nicotine products as part of harm-reduction strategies.

BAT Kenya also objected to the Bill’s classification of electronic cigarettes and oral nicotine pouches as tobacco products, arguing that it fails to distinguish between combustible cigarettes and alternative nicotine products with different risk profiles.

The firm raised concerns over proposed dual licensing requirements that would compel traders to register with the Ministry of Health in addition to existing licensing frameworks, saying the move would increase compliance costs and burden small-scale retailers.

It also criticised a proposed 100-metre restriction on tobacco sales, terming it impractical and difficult to enforce in densely populated trading areas.

Additionally, BAT Kenya flagged concerns over packaging reforms, restrictions on single-use plastics, and expanded powers for plain packaging regulations, noting that the industry is still adapting to changes introduced in June 2025.

The manufacturer has urged lawmakers to undertake broader stakeholder consultations, arguing that the Bill requires a more balanced, evidence-based approach that considers both public health objectives and economic realities.

Some of the key proposed laws in the Tobacco Control (Amendment) Bill, 2024 include a ban on flavours in tobacco and nicotine products, tighter regulation of electronic cigarettes and nicotine pouches.

The bill also seeks expanded graphic health warnings on packaging, possible plain packaging requirements, restrictions on sales locations including a proposed 100-metre limit, additional licensing and registration requirements for traders, and restrictions on single-use plastics in packaging.

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